Debt validation is a process that helps consumers better understand the documentation behind a debt being collected.
For private student loans, documentation can be particularly important because loans may have changed hands over time.
A borrower may wish to better understand:
- The original creditor
- The current owner of the debt
- Payment history records
- Assignment records
- Balance calculations
- Collection authority
Debt validation is not about avoiding legitimate obligations.
Instead, it focuses on understanding the records supporting the claim.
When debt has been sold, transferred, pooled, assigned, or placed into trusts, documentation can become more complex.
Consumers often benefit from understanding what records exist and how those records relate to the account being reported or collected. A well-organized file can help borrowers better evaluate their situation and determine what steps may be appropriate.
